Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF)
today reported quarterly net income of $7.45 million for fourth
quarter 2018, or $0.60 per diluted share -- equaling our previous
quarterly record, compared to $2.32 million, or $0.19 per diluted
share, for the fourth quarter of 2017. Earnings per diluted share
for fourth quarter 2017 were negatively impacted (on an after-tax
basis) by the one-time charge of $0.28 to re-measure the Company’s
net deferred tax assets as result of enactment of the Tax Cuts and
Jobs Act (“TCJA”).
For the full year 2018, Summit achieved record net income of
$28.07 million, and record earnings per diluted share of $2.26,
compared with $11.92 million, or $1.00 per diluted share, for
2017. Full year 2018 results were positively impacted (on a
diluted earnings per share basis) $0.29 as result of higher net
interest income, $0.06 due to growth in trust and wealth management
fees, $0.08 from increased deposit account-related fees and $0.25
in lower income tax expense as result of TCJA’s lower income tax
rates. Higher total noninterest expense of $0.16 per diluted share
partially offset these positive impacts. Lower earnings in 2017
were principally attributable to the following non-core or one-time
items (on an after-tax, diluted earnings per share basis):
$0.52 as result of a litigation settlement, $0.29 due to the
enactment of the TCJA, and $0.08 as result of merger-related
expenses.
Highlights for Q4 2018
- Loan balances, excluding mortgage warehouse lines of credit,
increased $46.1 million during the quarter, or 11.5 percent (on an
annualized basis); excluding mortgage warehouse lines of credit,
loans grew $80.4 million or 5.1 percent since year-end 2017;
- Net interest margin for the quarter increased 8 basis points to
3.61 percent compared to Q3 2018;
- Efficiency ratio improved to 51.02 percent compared to 54.25
percent for the linked-quarter as result of the improved net
interest margin and well-controlled overhead;
- Provision for loan losses remained unchanged at $500,000
compared to the prior quarter;
- Realized securities losses of $205,000 in Q4 2018 compared to
realized securities gains of $8,000 in Q3 2018; and
- Write-downs of foreclosed properties were $318,000 in Q4 2018
compared to $39,000 in Q3 2018, while the net loss on sales of
foreclosed properties increased to $70,000 in Q4 2018 from $18,000
in Q3 2018.
H. Charles Maddy, III, President and Chief Executive Officer of
Summit, commented, “I am very gratified to report that for fourth
quarter 2018, Summit had record quarterly net income and tied its
previous record for quarterly earnings per share; and for the full
year 2018, we achieved a new annual earnings record both in net
income and on a per share basis. In addition, I am particularly
pleased by our continued solid lending activity and strong core
operating performance in this past quarter. Our acquisition of
Peoples Bankshares, Inc. closed at the beginning of 2019, and it
serves to combine Summit with a financially strong bank that shares
the same commitment to build long-term client relationships by
providing ‘Service Beyond Expectations’. The financial synergies
relative to this transaction are already evident. I optimistically
look forward to 2019 and beyond as we are laser-focused on our goal
to be a consistent growing, high-performing community banking
institution."
Results from Operations
Total revenue for fourth quarter 2018, consisting of net
interest income and noninterest income, increased 4.1 percent to
$22.2 million compared to $21.4 million for the fourth quarter
2017. For the full year 2018, total revenue was $87.2 million
compared to $80.6 million for 2017, representing an 8.2 percent
increase primarily due to the acquisition of First Century
Bankshares, Inc. (“FCB”) in Q2 2017.
For the fourth quarter of 2018, net interest income increased
3.5 percent to $18.1 million compared to $17.4 million for the
prior-year fourth quarter and grew 4.9 percent compared to the
linked quarter principally as result of $44.2 million in growth in
average loans and 19 basis point improvement in average loan yields
during the quarter. The net interest margin for fourth quarter 2018
was 3.61 percent compared to 3.65 percent for the same year-ago
quarter, and 3.53 percent for the linked quarter. Excluding the
impact of accretion and amortization of fair value acquisition
accounting adjustments related to the acquired interest earning
assets and interest bearing liabilities, Summit’s net interest
margin was 3.57 percent for Q4 2018 and 3.54 percent for full year
2018.
Noninterest income, consisting primarily of insurance
commissions from Summit's insurance agency subsidiary, trust and
wealth management fees and service fee income from community
banking activities, for fourth quarter 2018 was $4.19 million
compared to $3.93 million for the comparable period of 2017.
Excluding realized securities gains and losses, noninterest income
was $4.39 million for fourth quarter 2018, compared to $4.00
million reported for fourth quarter 2017 and $4.20 million for the
linked quarter.
We recorded a $500,000 provision for loan losses during fourth
quarter 2018 and $375,000 in Q4 2017. The need for increased
loan loss provisioning during 2018 is directionally consistent with
changes in the credit quality in our loan portfolio and our loan
growth.
Q4 2018 total noninterest expense increased 1.0 percent to
$12.47 million compared to $12.35 million for the prior-year fourth
quarter. Noninterest expense for full year 2018 decreased 13.6
percent compared to 2017 principally due to: 1) $144,000 in merger
expenses being incurred in 2018 compared to $1.59 million in 2017;
and 2) a $9.9 million charge to resolve fully all litigation with
Residential Funding Company, LLC and ResCap Liquidating Trust
(collectively “ResCap”) recorded during 2017. Excluding the impact
of the ResCap litigation settlement charge and merger-related
expenses, noninterest expense for 2018 increased 7.5 percent to
$49.9 million compared to $46.3 million for 2017, principally as
result of the FCB acquisition.
Balance Sheet
At December 31, 2018, total assets were $2.20 billion, an
increase of $66.3 million, or 3.1 percent since December 31, 2017.
Total loans, net of unearned fees and allowance for loan losses,
were $1.68 billion at December 31, 2018, up $88.3 million, or 5.5
percent, from the $1.59 billion reported at year-end 2017.
Loans, excluding mortgage warehouse lines of credit, increased
$46.1 million during the quarter, or 11.5 percent (on an annualized
basis), and have grown $80.4 million or 5.1 percent since year-end
2017.
At December 31, 2018, deposits were $1.63 billion, an increase
of $34.2 million, or 2.1 percent, since year end 2017. During 2018,
checking deposits increased $117.3 million or 18.7 percent, time
deposits declined by $9.1 million or 1.5 percent and savings
deposits declined $74.0 million or 20.7 percent.
Shareholders’ equity was $219.8 million as of December 31, 2018
compared to $213.6 million at September 30, 2018 and $201.5 million
at December 31, 2017. Tangible book value per common share
increased to $15.75 at December 31, 2018 compared to $15.13 at the
end of third quarter 2018 and $14.08 at year end 2017. Summit had
12,312,933 outstanding common shares at year end 2018 compared to
12,358,562 at year end 2017.
As previously announced in Q3 2018, the Board of Directors
authorized the open market repurchase of up to 500,000 shares of
the issued and outstanding shares of Summit's common stock.
The timing and quantity of purchases under this stock repurchase
plan are at the discretion of management. The plan will
expire December 31, 2019, but may be discontinued, suspended, or
restarted at any time at the Company's discretion. During Q4
2018, 82,423 shares of our common stock were repurchased under the
Plan at an average price of $20.46 per share.
Asset Quality
As of December 31, 2018, nonperforming assets (“NPAs”),
consisting of nonperforming loans, foreclosed properties, and
repossessed assets, were $36.5 million, or 1.66 percent of assets.
This compares to $39.0 million, or 1.82 percent of assets at the
linked quarter-end, and $36.9 million, or 1.73 percent of assets,
at year-end 2017 as result of our continuing emphasis on improving
our overall asset quality.
Fourth quarter 2018 net loan charge-offs were $398,000, or 0.10
percent of average loans annualized; while adding $500,000 to the
allowance for loan losses through the provision for loan losses.
The allowance for loan losses stood at 0.77 percent of total loans
at December 31, 2018, compared to 0.78 percent at year-end
2017. If the acquired FCB and HCB loans, which were recorded
at fair value on the acquisition dates were excluded, the allowance
for loan losses to total loans ratio at December 31, 2018 and
December 31, 2017 would have been 0.84 percent and 0.91 percent,
respectively.
About the Company
Summit Financial Group, Inc. is a $2.20 billion financial
holding company headquartered in Moorefield, West Virginia. Summit
provides community banking services primarily in the Eastern
Panhandle and Southern regions of West Virginia and the Northern,
Shenandoah Valley and Southwestern regions of Virginia, through its
bank subsidiary, Summit Community Bank, Inc., which operates
thirty-three banking locations. Summit also operates Summit
Insurance Services, LLC in Moorefield, West Virginia and Leesburg,
Virginia.
FORWARD-LOOKING STATEMENTS
This press release contains comments or information that
constitute forward-looking statements (within the meaning of the
Private Securities Litigation Act of 1995) that are based on
current expectations that involve a number of risks and
uncertainties. Words such as “expects”, “anticipates”, “believes”,
“estimates” and other similar expressions or future or conditional
verbs such as “will”, “should”, “would” and “could” are intended to
identify such forward-looking statements.
Although we believe the expectations reflected in such
forward-looking statements are reasonable, actual results may
differ materially. Factors that might cause such a difference
include changes in interest rates and interest rate relationships;
demand for products and services; the degree of competition by
traditional and non-traditional competitors; changes in banking
laws and regulations; changes in tax laws; the impact of
technological advances; the outcomes of contingencies; trends in
customer behavior as well as their ability to repay loans; and
changes in the national and local economies. We undertake no
obligation to revise these statements following the date of this
press release.
Contact: |
Robert S. Tissue, Sr.
Vice President & CFO |
Telephone: |
(304) 530-0552 |
Email: |
rtissue@summitfgi.com |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
Quarterly Performance Summary (unaudited) |
|
|
|
Q4
2018 vs Q4 2017 |
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
Percent |
Dollars in thousands |
12/31/2018 |
12/31/2017 |
Change |
Statements of
Income |
|
|
|
|
Interest
income |
|
|
|
|
Loans,
including fees |
$ |
22,659 |
|
$ |
20,031 |
|
13.1 |
% |
|
Securities |
|
2,527 |
|
|
2,412 |
|
4.8 |
% |
|
Other |
|
127 |
|
|
144 |
|
-11.8 |
% |
|
Total
interest income |
|
25,313 |
|
|
22,587 |
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
Deposits |
|
5,103 |
|
|
3,224 |
|
58.3 |
% |
|
Borrowings |
|
2,158 |
|
|
1,925 |
|
12.1 |
% |
|
Total
interest expense |
|
7,261 |
|
|
5,149 |
|
41.0 |
% |
|
Net
interest income |
|
18,052 |
|
|
17,438 |
|
3.5 |
% |
|
Provision for loan
losses |
|
500 |
|
|
375 |
|
33.3 |
% |
|
Net interest income
after provision for loan losses |
|
17,552 |
|
|
17,063 |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
Insurance
commissions |
|
1,132 |
|
|
1,005 |
|
12.6 |
% |
|
Trust and
wealth management fees |
|
627 |
|
|
578 |
|
8.5 |
% |
|
Service
charges on deposit accounts |
|
1,209 |
|
|
1,200 |
|
0.8 |
% |
|
Bank card
revenue |
|
809 |
|
|
743 |
|
8.9 |
% |
|
Realized
securities (losses) gains |
|
(205 |
) |
|
(71 |
) |
188.7 |
% |
|
Bank
owned life insurance income |
|
249 |
|
|
258 |
|
-3.5 |
% |
|
Other
income |
|
366 |
|
|
218 |
|
67.9 |
% |
|
Total
noninterest income |
|
4,187 |
|
|
3,931 |
|
6.5 |
% |
|
Noninterest
expense |
|
|
|
|
Salaries
and employee benefits |
|
6,928 |
|
|
6,520 |
|
6.3 |
% |
|
Net
occupancy expense |
|
836 |
|
|
772 |
|
8.3 |
% |
|
Equipment
expense |
|
1,139 |
|
|
1,095 |
|
4.0 |
% |
|
Professional fees |
|
385 |
|
|
355 |
|
8.5 |
% |
|
Advertising and public relations |
|
193 |
|
|
185 |
|
4.3 |
% |
|
Amortization of intangibles |
|
410 |
|
|
435 |
|
-5.7 |
% |
|
FDIC
premiums |
|
140 |
|
|
250 |
|
-44.0 |
% |
|
Bank card
expense |
|
395 |
|
|
319 |
|
23.8 |
% |
|
Foreclosed properties expense, net of losses |
|
507 |
|
|
516 |
|
-1.7 |
% |
|
Merger-related expense |
|
59 |
|
|
14 |
|
321.4 |
% |
|
Other
expenses |
|
1,474 |
|
|
1,885 |
|
-21.8 |
% |
|
Total
noninterest expense |
|
12,466 |
|
|
12,346 |
|
1.0 |
% |
|
Income before income
taxes |
|
9,273 |
|
|
8,648 |
|
7.2 |
% |
|
Income taxes |
|
1,823 |
|
|
6,325 |
|
-71.2 |
% |
|
Net
income |
$ |
7,450 |
|
$ |
2,323 |
|
220.7 |
% |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
Quarterly Performance Summary (unaudited) |
|
|
|
Q4
2018 vs Q4 2017 |
|
|
|
|
For the Quarter
Ended |
Percent |
|
|
12/31/2018 |
12/31/2017 |
Change |
Per Share
Data |
|
|
|
|
Earnings per common
share |
|
|
|
|
Basic |
$ |
0.60 |
|
$ |
0.19 |
|
215.8 |
% |
|
Diluted |
$ |
0.60 |
|
$ |
0.19 |
|
215.8 |
% |
|
|
|
|
|
|
Cash
dividends |
$ |
0.14 |
|
$ |
0.11 |
|
27.3 |
% |
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
Basic |
|
12,358,104 |
|
|
12,325,067 |
|
0.3 |
% |
|
Diluted |
|
12,407,678 |
|
|
12,371,507 |
|
0.3 |
% |
|
|
|
|
|
|
Common shares
outstanding at period end |
|
12,312,933 |
|
|
12,358,562 |
|
-0.4 |
% |
|
|
|
|
|
Performance
Ratios |
|
|
|
|
Return on average
equity |
|
13.85 |
% |
|
4.62 |
% |
199.8 |
% |
|
Return on average
tangible equity |
|
16.41 |
% |
|
6.12 |
% |
168.1 |
% |
|
Return on average
assets |
|
1.38 |
% |
|
0.44 |
% |
213.6 |
% |
|
Net interest margin
(A) |
|
3.61 |
% |
|
3.65 |
% |
-1.1 |
% |
|
Efficiency ratio
(B) |
|
51.02 |
% |
|
51.47 |
% |
-0.9 |
% |
|
|
|
|
|
|
NOTE (A) –
Presented on a tax-equivalent basis assuming a federal tax rate of
21% for 2018 and 35% for 2017. |
|
|
|
|
NOTE (B) –
Computed on a tax equivalent basis excluding gains/losses on sales
of assets, write-downs of OREO properties to fair value and
amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
Annual Performance Summary (unaudited) |
|
|
|
2018 vs 2017 |
|
|
|
|
|
|
|
|
|
|
For the Year
Ended |
Percent |
Dollars in thousands |
12/31/2018 |
12/31/2017 |
Change |
Statements of
Income |
|
|
|
|
Interest
income |
|
|
|
|
Loans,
including fees |
$ |
85,283 |
|
$ |
74,908 |
|
13.9 |
% |
|
Securities |
|
9,587 |
|
|
9,010 |
|
6.4 |
% |
|
Other |
|
539 |
|
|
609 |
|
-11.5 |
% |
|
Total
interest income |
|
95,409 |
|
|
84,527 |
|
12.9 |
% |
|
Interest
expense |
|
|
|
|
Deposits |
|
17,675 |
|
|
11,210 |
|
57.7 |
% |
|
Borrowings |
|
7,937 |
|
|
7,170 |
|
10.7 |
% |
|
Total
interest expense |
|
25,612 |
|
|
18,380 |
|
39.3 |
% |
|
Net
interest income |
|
69,797 |
|
|
66,147 |
|
5.5 |
% |
|
Provision for loan
losses |
|
2,250 |
|
|
1,250 |
|
80.0 |
% |
|
Net interest income
after provision for loan losses |
|
67,547 |
|
|
64,897 |
|
4.1 |
% |
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
Insurance
commissions |
|
4,320 |
|
|
4,005 |
|
7.9 |
% |
|
Trust and
wealth management fees |
|
2,653 |
|
|
1,863 |
|
42.4 |
% |
|
Service
charges on deposit accounts |
|
4,631 |
|
|
4,109 |
|
12.7 |
% |
|
Bank card
revenue |
|
3,152 |
|
|
2,697 |
|
16.9 |
% |
|
Realized
securities gains (losses) |
|
622 |
|
|
(14 |
) |
n/m |
|
|
Bank
owned life insurance income |
|
1,022 |
|
|
1,017 |
|
0.5 |
% |
|
Other
income |
|
1,022 |
|
|
750 |
|
36.3 |
% |
|
Total
noninterest income |
|
17,422 |
|
|
14,427 |
|
20.8 |
% |
|
Noninterest
expense |
|
|
|
|
Salaries
and employee benefits |
|
27,478 |
|
|
25,075 |
|
9.6 |
% |
|
Net
occupancy expense |
|
3,364 |
|
|
3,011 |
|
11.7 |
% |
|
Equipment
expense |
|
4,411 |
|
|
3,954 |
|
11.6 |
% |
|
Professional fees |
|
1,607 |
|
|
1,367 |
|
17.6 |
% |
|
Advertising and public relations |
|
654 |
|
|
578 |
|
13.1 |
% |
|
Amortization of intangibles |
|
1,671 |
|
|
1,410 |
|
18.5 |
% |
|
FDIC
premiums |
|
830 |
|
|
1,065 |
|
-22.1 |
% |
|
Bank card
expense |
|
1,475 |
|
|
1,432 |
|
3.0 |
% |
|
Foreclosed properties expense, net of losses |
|
1,350 |
|
|
1,339 |
|
0.8 |
% |
|
Litigation settlement |
|
- |
|
|
9,900 |
|
-100.0 |
% |
|
Merger-related expense |
|
144 |
|
|
1,589 |
|
-90.9 |
% |
|
Other
expenses |
|
6,889 |
|
|
7,025 |
|
-1.9 |
% |
|
Total
noninterest expense |
|
49,873 |
|
|
57,745 |
|
-13.6 |
% |
|
Income before income
taxes |
|
35,096 |
|
|
21,579 |
|
62.6 |
% |
|
Income taxes |
|
7,024 |
|
|
9,664 |
|
-27.3 |
% |
|
Net
income |
$ |
28,072 |
|
$ |
11,915 |
|
135.6 |
% |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
Annual Performance Summary (unaudited) |
|
|
|
2018 vs 2017 |
|
|
|
|
For the Year
Ended |
Percent |
|
|
12/31/2018 |
12/31/2017 |
Change |
Per Share
Data |
|
|
|
|
Earnings per common
share |
|
|
|
|
Basic |
$ |
2.27 |
|
$ |
1.00 |
|
127.0 |
% |
|
Diluted |
$ |
2.26 |
|
$ |
1.00 |
|
126.0 |
% |
|
|
|
|
|
|
Cash
dividends |
$ |
0.53 |
|
$ |
0.44 |
|
20.5 |
% |
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
Basic |
|
12,364,468 |
|
|
11,918,390 |
|
3.7 |
% |
|
Diluted |
|
12,424,573 |
|
|
11,949,245 |
|
4.0 |
% |
|
|
|
|
|
|
Common shares
outstanding at period end |
|
12,312,933 |
|
|
12,358,562 |
|
-0.4 |
% |
|
|
|
|
|
Performance
Ratios |
|
|
|
|
Return on average
equity |
|
13.43 |
% |
|
6.40 |
% |
109.8 |
% |
|
Return on average
tangible equity |
|
16.09 |
% |
|
8.01 |
% |
100.9 |
% |
|
Return on average
assets |
|
1.32 |
% |
|
0.59 |
% |
123.7 |
% |
|
Net interest margin
(A) |
|
3.57 |
% |
|
3.67 |
% |
-2.7 |
% |
|
Efficiency ratio
(B) |
|
53.72 |
% |
|
52.41 |
% |
2.5 |
% |
|
|
|
|
|
NOTE
(A) – Presented on a tax-equivalent basis assuming a federal tax
rate of 21% for 2018 and 35% for 2017. |
|
|
|
NOTE
(B) – Computed on a tax equivalent basis excluding gains/losses on
sales of assets, write-downs of OREO properties to fair value and
amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:
SMMF) |
|
Five Quarter Performance Summary
(unaudited) |
|
|
|
For the Quarter
Ended |
Dollars in thousands |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
Statements of
Income |
|
|
|
|
|
|
Interest
income |
|
|
|
|
|
Loans,
including fees |
$ |
22,659 |
|
|
$ |
21,295 |
|
$ |
20,962 |
|
$ |
20,366 |
|
$ |
20,031 |
|
|
Securities |
|
2,527 |
|
|
|
2,367 |
|
|
2,303 |
|
|
2,391 |
|
|
2,412 |
|
|
Other |
|
127 |
|
|
|
138 |
|
|
134 |
|
|
140 |
|
|
144 |
|
|
Total
interest income |
|
25,313 |
|
|
|
23,800 |
|
|
23,399 |
|
|
22,897 |
|
|
22,587 |
|
|
Interest
expense |
|
|
|
|
|
Deposits |
|
5,103 |
|
|
|
4,714 |
|
|
4,309 |
|
|
3,549 |
|
|
3,224 |
|
|
Borrowings |
|
2,158 |
|
|
|
1,873 |
|
|
1,815 |
|
|
2,091 |
|
|
1,925 |
|
|
Total
interest expense |
|
7,261 |
|
|
|
6,587 |
|
|
6,124 |
|
|
5,640 |
|
|
5,149 |
|
|
Net
interest income |
|
18,052 |
|
|
|
17,213 |
|
|
17,275 |
|
|
17,257 |
|
|
17,438 |
|
|
Provision for loan
losses |
|
500 |
|
|
|
500 |
|
|
750 |
|
|
500 |
|
|
375 |
|
|
Net
interest income after provision for loan losses |
|
17,552 |
|
|
|
16,713 |
|
|
16,525 |
|
|
16,757 |
|
|
17,063 |
|
|
Noninterest
income |
|
|
|
|
|
Insurance
commissions |
|
1,132 |
|
|
|
1,062 |
|
|
1,013 |
|
|
1,113 |
|
|
1,005 |
|
|
Trust and
wealth management fees |
|
627 |
|
|
|
687 |
|
|
672 |
|
|
667 |
|
|
578 |
|
|
Service
charges on deposit accounts |
|
1,209 |
|
|
|
1,215 |
|
|
1,116 |
|
|
1,091 |
|
|
1,200 |
|
|
Bank card
revenue |
|
809 |
|
|
|
793 |
|
|
801 |
|
|
749 |
|
|
742 |
|
|
Realized
securities (losses) gains |
|
(205 |
) |
|
|
8 |
|
|
87 |
|
|
732 |
|
|
(71 |
) |
|
Bank
owned life insurance income |
|
248 |
|
|
|
250 |
|
|
249 |
|
|
275 |
|
|
258 |
|
|
Other
income |
|
367 |
|
|
|
196 |
|
|
210 |
|
|
249 |
|
|
219 |
|
|
Total
noninterest income |
|
4,187 |
|
|
|
4,211 |
|
|
4,148 |
|
|
4,876 |
|
|
3,931 |
|
|
Noninterest
expense |
|
|
|
|
|
Salaries
and employee benefits |
|
6,928 |
|
|
|
6,806 |
|
|
6,922 |
|
|
6,821 |
|
|
6,520 |
|
|
Net
occupancy expense |
|
836 |
|
|
|
856 |
|
|
840 |
|
|
832 |
|
|
772 |
|
|
Equipment
expense |
|
1,139 |
|
|
|
1,118 |
|
|
1,071 |
|
|
1,083 |
|
|
1,095 |
|
|
Professional fees |
|
385 |
|
|
|
503 |
|
|
385 |
|
|
333 |
|
|
355 |
|
|
Advertising and public relations |
|
193 |
|
|
|
170 |
|
|
188 |
|
|
103 |
|
|
185 |
|
|
Amortization of intangibles |
|
410 |
|
|
|
413 |
|
|
413 |
|
|
436 |
|
|
435 |
|
|
FDIC
premiums |
|
140 |
|
|
|
210 |
|
|
240 |
|
|
240 |
|
|
250 |
|
|
Bank card
expense |
|
395 |
|
|
|
384 |
|
|
361 |
|
|
335 |
|
|
319 |
|
|
Foreclosed properties expense, net of losses |
|
507 |
|
|
|
169 |
|
|
350 |
|
|
325 |
|
|
516 |
|
|
Merger-related expense |
|
59 |
|
|
|
86 |
|
|
- |
|
|
- |
|
|
14 |
|
|
Other
expenses |
|
1,474 |
|
|
|
1,643 |
|
|
1,965 |
|
|
1,806 |
|
|
1,885 |
|
|
Total
noninterest expense |
|
12,466 |
|
|
|
12,358 |
|
|
12,735 |
|
|
12,314 |
|
|
12,346 |
|
|
Income before income
taxes |
|
9,273 |
|
|
|
8,566 |
|
|
7,938 |
|
|
9,319 |
|
|
8,648 |
|
|
Income tax
expense |
|
1,823 |
|
|
|
1,667 |
|
|
1,658 |
|
|
1,876 |
|
|
6,325 |
|
|
Net
income |
$ |
7,450 |
|
|
$ |
6,899 |
|
$ |
6,280 |
|
$ |
7,443 |
|
$ |
2,323 |
|
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
|
|
|
Five Quarter Performance Summary (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
|
|
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
Per
Share Data |
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
Basic |
$ |
0.60 |
|
$ |
0.56 |
|
$ |
0.51 |
|
$ |
0.60 |
|
$ |
0.19 |
|
|
Diluted |
$ |
0.60 |
|
$ |
0.55 |
|
$ |
0.51 |
|
$ |
0.60 |
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
Cash
dividends |
$ |
0.14 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
|
|
Basic |
|
12,358,104 |
|
|
12,374,350 |
|
|
12,366,522 |
|
|
12,358,849 |
|
|
12,325,067 |
|
|
Diluted |
|
12,407,678 |
|
|
12,439,051 |
|
|
12,431,984 |
|
|
12,383,757 |
|
|
12,371,507 |
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end |
|
12,312,933 |
|
|
12,382,450 |
|
|
12,373,747 |
|
|
12,366,360 |
|
|
12,358,562 |
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
Return on average
equity |
|
13.85 |
% |
|
13.00 |
% |
|
12.16 |
% |
|
14.73 |
% |
|
4.62 |
% |
|
Return on average
tangible equity |
|
16.41 |
% |
|
15.53 |
% |
|
14.68 |
% |
|
17.80 |
% |
|
6.12 |
% |
|
Return on average
assets |
|
1.38 |
% |
|
1.31 |
% |
|
1.19 |
% |
|
1.40 |
% |
|
0.44 |
% |
|
Net interest margin
(A) |
|
3.61 |
% |
|
3.53 |
% |
|
3.58 |
% |
|
3.58 |
% |
|
3.65 |
% |
|
Efficiency ratio
(B) |
|
51.02 |
% |
|
54.25 |
% |
|
55.88 |
% |
|
53.84 |
% |
|
52.44 |
% |
|
|
|
|
|
|
|
NOTE
(A) – Presented on a tax-equivalent basis assuming a federal tax
rate of 21% for 2018 and 35% for 2017. |
|
|
|
|
|
|
|
NOTE
(B) – Computed on a tax equivalent basis excluding gains/losses on
sales of assets, write-downs of OREO properties to fair value and
amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
|
|
Selected Balance Sheet Data (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands, except per share
amounts |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and due from
banks |
$ |
23,061 |
|
$ |
9,382 |
|
$ |
8,314 |
|
$ |
9,042 |
|
$ |
9,641 |
|
|
Interest bearing
deposits other banks |
|
36,479 |
|
|
44,452 |
|
|
38,097 |
|
|
38,365 |
|
|
42,990 |
|
|
Securities |
|
293,284 |
|
|
288,040 |
|
|
283,221 |
|
|
296,890 |
|
|
328,723 |
|
|
Loans, net |
|
1,682,005 |
|
|
1,632,747 |
|
|
1,617,373 |
|
|
1,631,150 |
|
|
1,593,744 |
|
|
Property held for
sale |
|
21,432 |
|
|
22,017 |
|
|
21,606 |
|
|
21,442 |
|
|
21,470 |
|
|
Premises and equipment,
net |
|
37,553 |
|
|
36,888 |
|
|
36,017 |
|
|
35,554 |
|
|
34,209 |
|
|
Goodwill and other
intangible assets |
|
25,842 |
|
|
26,252 |
|
|
26,665 |
|
|
27,077 |
|
|
27,513 |
|
|
Cash surrender value of
life insurance policies |
|
42,420 |
|
|
42,208 |
|
|
41,932 |
|
|
41,668 |
|
|
41,358 |
|
|
Other assets |
|
38,510 |
|
|
36,741 |
|
|
34,427 |
|
|
33,707 |
|
|
34,592 |
|
|
Total assets |
$ |
2,200,586 |
|
$ |
2,138,727 |
|
$ |
2,107,652 |
|
$ |
2,134,895 |
|
$ |
2,134,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
Deposits |
$ |
1,634,826 |
|
$ |
1,651,064 |
|
$ |
1,639,996 |
|
$ |
1,654,523 |
|
$ |
1,600,601 |
|
|
Short-term
borrowings |
|
309,084 |
|
|
238,403 |
|
|
202,429 |
|
|
193,513 |
|
|
250,499 |
|
|
Long-term borrowings
and subordinated debentures |
|
20,324 |
|
|
20,328 |
|
|
40,332 |
|
|
65,336 |
|
|
65,340 |
|
|
Other liabilities |
|
16,522 |
|
|
15,376 |
|
|
15,016 |
|
|
16,514 |
|
|
16,295 |
|
|
Shareholders'
equity |
|
219,830 |
|
|
213,556 |
|
|
209,879 |
|
|
205,009 |
|
|
201,505 |
|
|
Total liabilities and shareholders' equity |
$ |
2,200,586 |
|
$ |
2,138,727 |
|
$ |
2,107,652 |
|
$ |
2,134,895 |
|
$ |
2,134,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
17.85 |
|
$ |
17.25 |
|
$ |
16.96 |
|
$ |
16.55 |
|
$ |
16.30 |
|
|
Tangible book value per
common share |
$ |
15.75 |
|
$ |
15.13 |
|
$ |
14.81 |
|
$ |
14.36 |
|
$ |
14.08 |
|
|
Tangible common equity
to tangible assets |
|
8.9 |
% |
|
8.9 |
% |
|
8.8 |
% |
|
8.4 |
% |
|
8.3 |
% |
SUMMIT FINANCIAL GROUP INC.
(NASDAQ:
SMMF) |
|
|
|
|
Regulatory Capital Ratios (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
Summit Financial Group, Inc. |
|
|
|
|
|
|
CET1 Risk-based
Capital |
11.1 |
% |
11.1 |
% |
11.0 |
% |
10.7 |
% |
10.6 |
% |
|
Tier 1 Risk-based
Capital |
12.2 |
% |
12.2 |
% |
12.1 |
% |
11.8 |
% |
11.8 |
% |
|
Total Risk-based
Capital |
12.9 |
% |
12.9 |
% |
12.8 |
% |
12.5 |
% |
12.5 |
% |
|
Tier 1 Leverage
Ratio |
10.1 |
% |
10.1 |
% |
9.9 |
% |
9.5 |
% |
9.4 |
% |
|
|
|
|
|
|
|
Summit Community Bank, Inc. |
|
|
|
|
|
|
CET1 Risk-based
Capital |
12.0 |
% |
12.0 |
% |
12.0 |
% |
11.7 |
% |
11.7 |
% |
|
Tier 1 Risk-based
Capital |
12.0 |
% |
12.0 |
% |
12.0 |
% |
11.7 |
% |
11.7 |
% |
|
Total Risk-based
Capital |
12.8 |
% |
12.7 |
% |
12.8 |
% |
12.5 |
% |
12.5 |
% |
|
Tier 1 Leverage
Ratio |
10.0 |
% |
9.9 |
% |
9.8 |
% |
9.5 |
% |
9.4 |
% |
SUMMIT FINANCIAL GROUP INC.
(NASDAQ:
SMMF) |
|
|
|
|
Loan Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
194,315 |
|
$ |
167,972 |
|
$ |
171,410 |
|
$ |
189,586 |
|
$ |
189,981 |
|
Mortgage
warehouse lines |
|
39,140 |
|
|
35,910 |
|
|
54,332 |
|
|
45,702 |
|
|
30,757 |
|
Commercial
real estate |
|
|
|
|
|
|
Owner occupied |
|
266,362 |
|
|
272,475 |
|
|
262,174 |
|
|
265,075 |
|
|
250,202 |
|
Non-owner occupied |
|
564,826 |
|
|
530,568 |
|
|
503,047 |
|
|
498,445 |
|
|
484,902 |
|
Construction and development |
|
|
|
|
|
|
Land and development |
|
68,833 |
|
|
71,819 |
|
|
74,018 |
|
|
66,841 |
|
|
67,219 |
|
Construction |
|
|
24,731 |
|
|
25,703 |
|
|
25,711 |
|
|
33,327 |
|
|
33,412 |
|
Residential
real estate |
|
|
|
|
|
|
Non-jumbo |
|
|
336,977 |
|
|
340,783 |
|
|
343,044 |
|
|
346,477 |
|
|
354,101 |
|
Jumbo |
|
|
73,599 |
|
|
72,327 |
|
|
66,831 |
|
|
67,169 |
|
|
62,267 |
|
Home
equity |
|
|
80,910 |
|
|
82,018 |
|
|
82,409 |
|
|
83,382 |
|
|
84,028 |
|
Consumer |
|
|
32,460 |
|
|
33,664 |
|
|
34,249 |
|
|
34,825 |
|
|
36,202 |
|
Other |
|
|
12,899 |
|
|
12,452 |
|
|
12,728 |
|
|
12,578 |
|
|
13,238 |
|
Total loans, net of unearned fees |
|
1,695,052 |
|
|
1,645,691 |
|
|
1,629,953 |
|
|
1,643,407 |
|
|
1,606,309 |
|
Less
allowance for loan losses |
|
13,047 |
|
|
12,944 |
|
|
12,580 |
|
|
12,257 |
|
|
12,565 |
|
Loans, net |
$ |
1,682,005 |
|
$ |
1,632,747 |
|
$ |
1,617,373 |
|
$ |
1,631,150 |
|
$ |
1,593,744 |
|
SUMMIT FINANCIAL GROUP INC.
(NASDAQ:
SMMF) |
|
|
|
Deposit Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Dollars
in thousands |
|
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
Core deposits |
|
|
|
|
|
|
Non-interest bearing checking |
$ |
222,120 |
|
$ |
232,697 |
|
$ |
217,134 |
|
$ |
219,293 |
|
$ |
217,493 |
Interest bearing checking |
|
523,257 |
|
|
505,411 |
|
|
472,041 |
|
|
447,172 |
|
|
410,606 |
Savings |
|
|
284,173 |
|
|
301,269 |
|
|
322,940 |
|
|
346,962 |
|
|
358,168 |
Time deposits |
|
|
316,914 |
|
|
316,941 |
|
|
322,801 |
|
|
318,556 |
|
|
318,036 |
Total core deposits |
|
1,346,464 |
|
|
1,356,318 |
|
|
1,334,916 |
|
|
1,331,983 |
|
|
1,304,303 |
|
|
|
|
|
|
|
Brokered deposits |
|
|
220,497 |
|
|
227,312 |
|
|
238,662 |
|
|
242,049 |
|
|
202,509 |
Other non-core time deposits |
|
67,866 |
|
|
67,434 |
|
|
66,418 |
|
|
80,491 |
|
|
93,789 |
Total deposits |
$ |
1,634,827 |
|
$ |
1,651,064 |
|
$ |
1,639,996 |
|
$ |
1,654,523 |
|
$ |
1,600,601 |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
|
|
Asset Quality Information (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
Dollars in thousands |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
|
|
|
|
|
|
|
|
Gross loan
charge-offs |
$ |
705 |
|
|
$ |
413 |
|
|
$ |
525 |
|
|
$ |
960 |
|
|
$ |
550 |
|
|
Gross loan
recoveries |
|
(307 |
) |
|
|
(278 |
) |
|
|
(97 |
) |
|
|
(153 |
) |
|
|
(276 |
) |
|
Net loan
charge-offs (recoveries) |
$ |
398 |
|
|
$ |
135 |
|
|
$ |
428 |
|
|
$ |
807 |
|
|
$ |
274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to
average loans (annualized) |
|
0.10 |
% |
|
|
0.03 |
% |
|
|
0.10 |
% |
|
|
0.20 |
% |
|
|
0.07 |
% |
|
Allowance for loan
losses |
$ |
13,047 |
|
|
$ |
12,944 |
|
|
$ |
12,580 |
|
|
$ |
12,257 |
|
|
$ |
12,565 |
|
|
Allowance for loan
losses as a percentage of period end loans |
|
0.77 |
% |
|
|
0.79 |
% |
|
|
0.77 |
% |
|
|
0.75 |
% |
|
|
0.78 |
% |
|
Nonperforming
assets: |
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
Commercial |
$ |
935 |
|
|
$ |
801 |
|
|
$ |
954 |
|
|
$ |
734 |
|
|
$ |
696 |
|
|
Commercial real estate |
|
3,239 |
|
|
|
5,090 |
|
|
|
3,238 |
|
|
|
3,400 |
|
|
|
3,164 |
|
|
Residential construction and development |
|
3,198 |
|
|
|
3,200 |
|
|
|
3,233 |
|
|
|
3,642 |
|
|
|
3,569 |
|
|
Residential real estate |
|
7,506 |
|
|
|
7,760 |
|
|
|
8,241 |
|
|
|
7,521 |
|
|
|
7,656 |
|
|
Consumer |
|
147 |
|
|
|
118 |
|
|
|
110 |
|
|
|
160 |
|
|
|
238 |
|
|
Total
nonperforming loans |
|
15,025 |
|
|
|
16,969 |
|
|
|
15,776 |
|
|
|
15,457 |
|
|
|
15,323 |
|
|
Foreclosed
properties |
|
|
|
|
|
|
Commercial real estate |
|
1,762 |
|
|
|
1,762 |
|
|
|
1,818 |
|
|
|
1,875 |
|
|
|
1,789 |
|
|
Commercial construction and development |
|
6,479 |
|
|
|
6,790 |
|
|
|
6,815 |
|
|
|
7,140 |
|
|
|
7,392 |
|
|
Residential construction and development |
|
11,543 |
|
|
|
11,614 |
|
|
|
11,517 |
|
|
|
11,053 |
|
|
|
11,182 |
|
|
Residential real estate |
|
1,648 |
|
|
|
1,851 |
|
|
|
1,456 |
|
|
|
1,374 |
|
|
|
1,107 |
|
|
Total
foreclosed properties |
|
21,432 |
|
|
|
22,017 |
|
|
|
21,606 |
|
|
|
21,442 |
|
|
|
21,470 |
|
|
Other repossessed
assets |
|
5 |
|
|
|
5 |
|
|
|
12 |
|
|
|
18 |
|
|
|
68 |
|
|
Total
nonperforming assets |
$ |
36,462 |
|
|
$ |
38,991 |
|
|
$ |
37,394 |
|
|
$ |
36,917 |
|
|
$ |
36,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
period end loans |
|
0.89 |
% |
|
|
1.03 |
% |
|
|
0.97 |
% |
|
|
0.94 |
% |
|
|
0.95 |
% |
|
Nonperforming assets to
period end assets |
|
1.66 |
% |
|
|
1.82 |
% |
|
|
1.77 |
% |
|
|
1.73 |
% |
|
|
1.73 |
% |
|
|
|
|
|
|
|
|
Troubled debt
restructurings |
|
|
|
|
|
|
Performing |
$ |
26,609 |
|
|
$ |
27,441 |
|
|
$ |
27,559 |
|
|
$ |
27,408 |
|
|
$ |
28,347 |
|
|
Nonperforming |
|
388 |
|
|
|
113 |
|
|
|
281 |
|
|
|
76 |
|
|
|
26 |
|
|
Total
troubled debt restructurings |
$ |
26,997 |
|
|
$ |
27,554 |
|
|
$ |
27,840 |
|
|
$ |
27,484 |
|
|
$ |
28,373 |
|
Loans Past Due 30-89 Days (unaudited) |
|
|
|
|
|
|
|
For the Quarter
Ended |
Dollars in thousands |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
|
|
|
|
|
|
|
|
Commercial |
$ |
219 |
|
$ |
607 |
|
$ |
319 |
|
$ |
539 |
|
$ |
586 |
|
Commercial real
estate |
|
161 |
|
|
988 |
|
|
546 |
|
|
601 |
|
|
1,082 |
|
Construction and
development |
|
194 |
|
|
393 |
|
|
264 |
|
|
174 |
|
|
1,127 |
|
Residential real
estate |
|
6,249 |
|
|
5,513 |
|
|
4,125 |
|
|
5,218 |
|
|
7,236 |
|
Consumer |
|
593 |
|
|
345 |
|
|
337 |
|
|
425 |
|
|
504 |
|
Other |
|
38 |
|
|
11 |
|
|
8 |
|
|
15 |
|
|
38 |
|
Total |
$ |
7,454 |
|
$ |
7,857 |
|
$ |
5,599 |
|
$ |
6,972 |
|
$ |
10,573 |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
|
|
|
|
|
|
Average Balance Sheet, Interest Earnings & Expenses and
Average Rates |
|
|
|
|
|
|
Q4
2018 vs Q3 2018 vs Q4 2017 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Q4 2018 |
|
Q3 2018 |
|
Q4 2017 |
|
Average |
Earnings / |
Yield / |
|
Average |
Earnings / |
Yield / |
|
Average |
Earnings / |
Yield / |
Dollars
in thousands |
Balances |
Expense |
Rate |
|
Balances |
Expense |
Rate |
|
Balances |
Expense |
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest (1) |
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,660,250 |
|
$ |
22,519 |
|
5.38 |
% |
|
$ |
1,615,700 |
|
$ |
21,154 |
|
5.19 |
% |
|
$ |
1,562,978 |
|
$ |
19,879 |
|
5.05 |
% |
Tax-exempt (2) |
|
15,322 |
|
|
177 |
|
4.58 |
% |
|
|
15,688 |
|
|
178 |
|
4.50 |
% |
|
|
16,902 |
|
|
234 |
|
5.49 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
176,059 |
|
|
1,502 |
|
3.38 |
% |
|
|
155,574 |
|
|
1,227 |
|
3.13 |
% |
|
|
202,377 |
|
|
1,328 |
|
2.60 |
% |
Tax-exempt (2) |
|
132,088 |
|
|
1,296 |
|
3.89 |
% |
|
|
146,174 |
|
|
1,443 |
|
3.92 |
% |
|
|
142,641 |
|
|
1,668 |
|
4.64 |
% |
Interest
bearing deposits other banks and Federal funds sold |
|
35,402 |
|
|
127 |
|
1.42 |
% |
|
|
38,642 |
|
|
138 |
|
1.42 |
% |
|
|
42,021 |
|
|
144 |
|
1.36 |
% |
Total interest earning
assets |
|
2,019,121 |
|
|
25,621 |
|
5.03 |
% |
|
|
1,971,778 |
|
|
24,140 |
|
4.86 |
% |
|
|
1,966,919 |
|
|
23,253 |
|
4.69 |
% |
Noninterest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
Cash
& due from banks |
|
9,686 |
|
|
|
|
|
9,326 |
|
|
|
|
|
9,753 |
|
|
|
Premises
& equipment |
|
37,224 |
|
|
|
|
|
36,533 |
|
|
|
|
|
34,263 |
|
|
|
Other
assets |
|
109,228 |
|
|
|
|
|
108,628 |
|
|
|
|
|
111,596 |
|
|
|
Allowance
for loan losses |
|
(13,172 |
) |
|
|
|
|
(12,865 |
) |
|
|
|
|
(12,628 |
) |
|
|
Total
assets |
$ |
2,162,087 |
|
|
|
|
$ |
2,113,400 |
|
|
|
|
$ |
2,109,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing demand deposits |
$ |
519,465 |
|
$ |
1,504 |
|
1.15 |
% |
|
$ |
486,107 |
|
$ |
1,168 |
|
0.95 |
% |
|
$ |
405,307 |
|
$ |
447 |
|
0.44 |
% |
Savings
deposits |
|
289,809 |
|
|
861 |
|
1.18 |
% |
|
|
312,467 |
|
|
857 |
|
1.09 |
% |
|
|
360,630 |
|
|
684 |
|
0.75 |
% |
Time
deposits |
|
607,037 |
|
|
2,738 |
|
1.79 |
% |
|
|
616,657 |
|
|
2,689 |
|
1.73 |
% |
|
|
629,871 |
|
|
2,093 |
|
1.32 |
% |
Short-term borrowings |
|
270,092 |
|
|
1,909 |
|
2.80 |
% |
|
|
211,211 |
|
|
1,436 |
|
2.70 |
% |
|
|
220,027 |
|
|
1,240 |
|
2.24 |
% |
Long-term
borrowings and subordinated debentures |
|
20,326 |
|
|
249 |
|
4.86 |
% |
|
|
39,265 |
|
|
437 |
|
4.42 |
% |
|
|
65,342 |
|
|
685 |
|
4.16 |
% |
Total interest bearing
liabilities |
|
1,706,729 |
|
|
7,261 |
|
1.69 |
% |
|
|
1,665,707 |
|
|
6,587 |
|
1.57 |
% |
|
|
1,681,177 |
|
|
5,149 |
|
1.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
223,999 |
|
|
|
|
|
219,986 |
|
|
|
|
|
214,624 |
|
|
|
Other
liabilities |
|
16,138 |
|
|
|
|
|
15,447 |
|
|
|
|
|
12,886 |
|
|
|
Total
liabilities |
|
1,946,866 |
|
|
|
|
|
1,901,140 |
|
|
|
|
|
1,908,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity -
common |
|
215,221 |
|
|
|
|
|
212,260 |
|
|
|
|
|
201,216 |
|
|
|
Total
liabilities and shareholders' equity |
$ |
2,162,087 |
|
|
|
|
$ |
2,113,400 |
|
|
|
|
$ |
2,109,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
EARNINGS |
|
$ |
18,360 |
|
|
|
$ |
17,553 |
|
|
|
$ |
18,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
|
3.61 |
% |
|
|
|
|
3.53 |
% |
|
|
|
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) For purposes of this table, nonaccrual loans are
included in average loan balances. |
|
|
|
|
|
|
|
|
|
|
|
|
(2)
For purposes of this table, interest income on tax-exempt
securities and loans has been adjusted assuming a Federal tax rate
of 21% for 2018 periods and 35% for 2017 period. The
taxable equivalent adjustment results in an increase in interest
income of $309,000, $340,000 and $666,000 for Q4 2018, Q3
2018 and Q4 2017, respectively. |
SUMMIT FINANCIAL GROUP, INC.
(NASDAQ:
SMMF) |
|
|
|
|
|
Average Balance Sheet, Interest Earnings & Expenses and
Average Rates |
|
|
|
|
YTD 2018 vs YTD
2017 (unaudited) |
|
|
|
|
|
|
|
|
|
|
YTD 2018 |
|
YTD 2017 |
|
Average |
Earnings / |
Yield / |
|
Average |
Earnings / |
Yield / |
Dollars
in thousands |
Balances |
Expense |
Rate |
|
Balances |
Expense |
Rate |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Interest earning
assets |
|
|
|
|
|
|
|
Loans,
net of unearned interest (1) |
|
|
|
|
|
|
|
Taxable |
$ |
1,626,725 |
|
$ |
84,716 |
|
5.21 |
% |
|
$ |
1,480,601 |
|
$ |
74,365 |
|
5.02 |
% |
Tax-exempt (2) |
|
15,776 |
|
|
718 |
|
4.55 |
% |
|
|
14,899 |
|
|
835 |
|
5.60 |
% |
Securities |
|
|
|
|
|
|
|
Taxable |
|
170,912 |
|
|
5,341 |
|
3.13 |
% |
|
|
200,596 |
|
|
5,071 |
|
2.53 |
% |
Tax-exempt (2) |
|
136,913 |
|
|
5,375 |
|
3.93 |
% |
|
|
129,342 |
|
|
6,060 |
|
4.69 |
% |
Interest
bearing deposits other banks and Federal funds sold |
|
38,148 |
|
|
539 |
|
1.41 |
% |
|
|
43,400 |
|
|
609 |
|
1.40 |
% |
Total interest earning
assets |
|
1,988,474 |
|
|
96,689 |
|
4.86 |
% |
|
|
1,868,838 |
|
|
86,940 |
|
4.65 |
% |
|
|
|
|
|
|
|
|
Noninterest earning
assets |
|
|
|
|
|
|
|
Cash
& due from banks |
|
9,517 |
|
|
|
|
|
8,492 |
|
|
|
Premises
& equipment |
|
36,025 |
|
|
|
|
|
31,750 |
|
|
|
Other
assets |
|
107,856 |
|
|
|
|
|
109,456 |
|
|
|
Allowance
for loan losses |
|
(12,830 |
) |
|
|
|
|
(12,196 |
) |
|
|
Total
assets |
$ |
2,129,042 |
|
|
|
|
$ |
2,006,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
Interest
bearing demand deposits |
$ |
471,725 |
|
$ |
4,205 |
|
0.89 |
% |
|
$ |
358,225 |
|
$ |
1,169 |
|
0.33 |
% |
Savings
deposits |
|
320,184 |
|
|
3,233 |
|
1.01 |
% |
|
|
363,949 |
|
|
2,563 |
|
0.70 |
% |
Time
deposits |
|
621,659 |
|
|
10,237 |
|
1.65 |
% |
|
|
609,156 |
|
|
7,478 |
|
1.23 |
% |
Short-term borrowings |
|
228,142 |
|
|
5,993 |
|
2.63 |
% |
|
|
205,743 |
|
|
4,473 |
|
2.17 |
% |
Long-term
borrowings and subordinated debentures |
|
44,132 |
|
|
1,944 |
|
4.40 |
% |
|
|
65,629 |
|
|
2,697 |
|
4.11 |
% |
|
|
1,685,842 |
|
|
25,612 |
|
1.52 |
% |
|
|
1,602,702 |
|
|
18,380 |
|
1.15 |
% |
Noninterest bearing
liabilities |
|
|
|
|
|
|
|
Demand
deposits |
|
218,541 |
|
|
|
|
|
200,707 |
|
|
|
Other
liabilities |
|
15,574 |
|
|
|
|
|
16,669 |
|
|
|
Total
liabilities |
|
1,919,957 |
|
|
|
|
|
1,820,078 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity -
common |
|
209,085 |
|
|
|
|
|
186,262 |
|
|
|
Total
liabilities and shareholders' equity |
$ |
2,129,042 |
|
|
|
|
$ |
2,006,340 |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
EARNINGS |
|
$ |
71,077 |
|
|
|
$ |
68,560 |
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
|
3.57 |
% |
|
|
|
|
3.67 |
% |
|
|
|
|
|
|
|
|
(1) For purposes of this table, nonaccrual loans are
included in average loan balances. |
|
|
|
|
|
|
|
|
(2)
For purposes of this table, interest income on tax-exempt
securities and loans has been adjusted assuming a Federal tax rate
of 21% for 2018 and 35% for 2017. The taxable equivalent
adjustment results in an increase in interest income of $1,280,000
and $2,413,000, respectively. |
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